Tuesday, June 19, 2018

Former leader of Maxi-Group must return $213 million

The Ural District Federal Commercial Court has upheld a lower court's decision to recover a total of $213.6 million from the former Maxi-Group leader Nikolai Maximov.

The Sverdlovsk Region Commercial Court issued its initial ruling on December 23 in regards to UralSnabKomplekt's bankruptcy proceedings. As part of the commercial court case, the UralSnabKomplekt bankruptcy administrator requested that former Maxi-Group managers Sergei Mironov and Nikolai Maximov remain liable for $213.6 million as part of the company's bankruptcy case, RapsiNews.com reports.

UralSnabKomplekt was an integral part of Maxi-Group and declared bankruptcy in February 2009. The bankruptcy administrator, however, discovered that the root of the company's financial issues could be traced back to a series of economically non-viable transactions that occurred in 2006 and 2009, resulting in a $216.5 million dollar debt.

"The funds came from different Maxi-Group enterprises and the same day were forwarded to the accounts of entities outside the group controlled by Maximov," the bankruptcy administrator, said, according to RapsiNews.com.

The debts were never paid off, and eventually both UralSnabKomplekt and Maxi-Group became unable to make payments, resulting in the current bankruptcy of both companies.